Committee publication · Correspondence · 26 February 2026 · HC 459
Correspondence from Scottish Chambers of Commerce, CEO Charandeep Singh regarding follow up from 4 February session, dated 10 February 2026
Summary
Scottish Chambers of Commerce CEO Charandeep Singh follows up on his 4 February evidence session, providing regional energy-cost pressure data from the Quarterly Economic Indicator (Q2 2022–Q4 2025). Energy remains a structural challenge for ~52% of Scottish firms in Q4 2025. Singh proposes two targeted interventions: a rural energy support voucher scheme for off-gas-grid SMEs and temporary reversal of increased employer National Insurance contributions.
Key findings
- Energy costs peaked at 72.6% of firms in Q3 2022, moderated to 50–51% annual average in 2024–2025, and remained at 52.2% Scotland-wide in Q4 2025—indicating a structural, not temporary, pressure.
- Regional variation in Q4 2025: South of Scotland 63.6%, West 55.1%, East 50.4%, Highlands & Islands 42.3%. Highlands showed strongest easing from 96.2% peak in Q3 2022.
- Off-gas-grid rural businesses and households pay energy bills up to four times higher than mains-gas-connected equivalents due to lack of price cap protection and volatile LPG/heating oil pricing.
- Singh proposes a rural energy support voucher scheme for off-gas-grid SMEs and temporary reversal of employer NIC increases to give businesses capacity to absorb higher energy costs.
- Energy/Utilities pressure remains a 'common driver of price pressure' affecting approximately half of Scottish firms, not a resolved issue.
Tone
FactualTopics
energy-costssmall-business-supportrural-economybusiness-viabilityeconomic-indicators
Key actors
Charandeep Singh, Patricia Ferguson MP, Scottish Affairs Committee, Scottish Chambers of Commerce, Angus MacDonald
Notable line
“… high energy costs are no longer a temporary shock for SMEs in Scotland. They are shaping confidence, behaviour, and business viability.”
Key Quotes
“… high energy costs are no longer a temporary shock for SMEs in Scotland. They are shaping confidence, behaviour, and business viability.”
“… rural businesses, who continue to pay disproportionately higher costs due to the double hit of no price cap protection, and the increased pricing volatility of alternative fuels such as LPG and heating oil.”
“Energy/Utilities remains a structural, not temporary, pressure which is still affecting around half of firms by late”
Source · parliament.uk record ↗